SEC granted default judgement against Trudy Gilmond
Trudy Gilmond’s theft of over $2 million dollars from Zeek Rewards victims saw the SEC file legal action against her in 2015.
The case progressed throughout 2015 and in early 2016 Judge Mullen scheduled a trial for September, 2017.
Not much has happened since then, prompting the SEC to file for a suspension of the current trial schedule.
The SEC’s January 27th filing claims that Gilmond (right) has consistently failed to participate in scheduled proceedings.
On February 16, 2016, Gilmond filed an Amended Answer at the request of undersigned counsel.
After answering the Complaint, however, Gilmond declined to participate further in this litigation.
She made no initial disclosures, as required by Rule 26 of the Federal Rules of Civil Procedure, nor did she respond to written discovery served by the SEC.
On September 28, 2016 the SEC served Gilmond with a notice of deposition for November 7, 2016.
Gilmond failed to appear.
Gilmond’s refusal to participate in discovery has prevented the Commission from completing fact discovery, understanding her defenses, and preparing an expert report.
The court scheduled deadlines for the above span January 31st, 2017 to April 30th, 2017.
When he scheduled Gilmond’s trial, Judge emphatically remarked that ‘failure to comply with this deadline WILL result in sanctions.‘
On March 8th, those sanctions manifested themselves by way of a court order directing Gilmond to ‘show cause as to why default judgment should not be entered in favor of the SEC for her refusal to participate in discovery in this case‘.
A deadline of March 20th was set, which uneventfully came and went.
By March 23rd, Judge Mullen had had enough and granted the SEC default judgement against Gilmond.
The Court entered an Order on March 8, 2017 directing Defendant Gilmond to show cause within ten days why default judgment should not be entered in favor of the SEC for her refusal to participate in discovery in this case.
Defendant Gilmond has failed to respond to the Court’s Order.
The facts leading up to the order, as per Judge Mullen, are as follows:
Gilmond was one of the most successful and prolific promoters of ZeekRewards.
From at least September 2011 until ZeekRewards was shut down in August 2012, Gilmond worked closely with the company founders and served as a senior “field liaison” to promote the scheme, persuading scores of unsophisticated retail investors to buy ZeekRewards securities upon the promise of profit sharing.
Gilmond reaped more than $1.7 million in transaction-based commissions and bogus profit-sharing for her recruiting efforts.
Gilmond has utterly refused to participate in discovery.
She made no initial disclosures pursuant to Rule 26 and failed to respond to any written discovery.
After repeated attempts by SEC counsel to reach Gilmond by email and telephone, she responded, making it clear that she was aware of the planned deposition, and that she did not plan to attend or further contest this matter.
Based upon this conduct evidencing Gilmond’s clear intent not to participate in this lawsuit, the Court finds that she has acted in bad faith.
The SEC has been prejudiced by her failure to produce any evidence relevant to her defense.
Moreover, this type of callous disregard for the rules of discovery and this Court’s Discovery Plan must be deterred.
The Court further finds that no lesser sanction is likely to be effective.
Accordingly, default is an appropriate sanction.
The facts are presented in the SEC’s original complaint “are taken as true” by the court, with Gilmond
prohibited from opposing the Commission’s claims; her Amended Answer is stricken; and default judgment is entered against her.
The SEC have been directed to file a supplemental briefing on ‘on remedies, including injunctive relief, disgorgement, and civil penalties‘.
That was on March 27th, but as at the time of publication the regulator has yet to make any additional filings.
Bear in mind that whatever the SEC do eventually file for, will be on top of an existing judgement against Gilmond for $2.1 million.
Update 29th June 2017 – On June 21st the SEC was granted Final Judgement against Trudy Gilmond.
The Final Judgement order will see Gilmond pay back $1,752,673.47 in disgorgement, $169.084 in prejudgment interest and a $150,000 civil penalty.
I am quite certain that Trudy and those who are slimey like she is do not have significant assets in her name.
They have had 4 1/2 years to spend and squirrel away much of this money. Very little if anything will likely be collected.
T Lamont fled the country and I am sure has done the same. Same with Coach Van, traveling the world spending it all.
Doesn’t matter. SEC is very good in tracing money. It’s called forensic accounting.
ANY body who helped her hide assets is subject to lawsuits, under “fraudulent transfer”. And now it’s a formal court order, any one who helped better come clean or face contempt.
Give me a break …. I know her personally —
It was a penny auction and pretty sure like on eBay when you bid on something only one person gets the item in regardless of what those people say they knew exactly what they were getting into and now because the government closed it down …… they want their money back???
If it wasn’t legitimate then why did she have to pay taxes on it????
Anyone that wants to call her slimy clearly does not know her—–
The SEC can hold their ass with her hand all day long if that’s what they choose to do ….. What a joke……
(Ozedit: Kooky sovereign citizen garbage removed)
This article shows ignorance at its best
Right, so you’re not going to be biased at all…
Zeek Rewards was a Ponzi scheme. It had nothing to do with penny auctions or eBay.
Who knows, who cares. Paying taxes or not doesn’t negate the fact that Zeek Rewards was a Ponzi scheme and Trudy Gilmond a Ponzi scammer.
Ok……Not sure your exact source of information but it absolutely was a penny auction…. Zeekler rewards (Ozedit: Zeekler Rewards doesn’t exist. Offtopic rant about government and whatever else removed.)
Paul Burks, the creator of Zeek Rewards was convicted of Ponzi fraud and sentenced to prison. He was taken into custody yesterday.
Ranting and raving against the ebil gubmint doesn’t change the facts:
Your friend Trudy Gilmond stole millions from Zeek Rewards Ponzi victims and refuses to give it back. That’s all that’s relevant here.
Are you serious ??? That’s all you’ve GOT???
Are you ignorant and don’t you understand that she could’ve easily been one of those so-called victims that chose to partake in Internet marketing that happened to be a penny auction ……???
I’m not sure what words you don’t understand.
Yes, a jury conviction for wire fraud and prison sentence for the founder of Zeek Rewards is “all I’ve got”.
Except that Trudy Gilmond made millions scamming people in Zeek Rewards. The victims are the people she stole money from.
And this is the last time I’m saying this: Zeek Rewards was not a penny auction. It had nothing to do with penny auctions.
I’m not sure what part of this you’re not understanding.
Zeekler is the penny auction. ZeekRewards is separate. Zeekler never ran enough penny auctions to generate the revenue ZeekRewards allegedly “shared”.
The case against ZeekRewards documented that Paul Burks just randomly made up a number for the daily “profit share” and it was entered MANUALLY, not calculated. This is confirmed by the programmer Dan Olivares, Zeek’s head IT guy.
Whatever so-called arguments you got only exist in your head and it’s contraindicated by real evidence used to convict Burks and the rest of the perps.
Maybe you should go read the court documents before you come up with more fanciful arguments in your denial of reality, which is just that… denial, no matter how many minutes you spent on it. It’s not real.
So, Ms Gilmond was a self styled “indsider” yet claims she didn’t know how RPG / Zeek made its’ money.
The $1.7 million must have just accidentally fallen in her bank account.
They say denial is a real and powerful force and Lucy is here to prove them right.
I’m pretty sure the Nile is a powerful force. Denial is just delusional imagination.
Gilmond was also in the cash gifting scam Prosper with Integrity although, no doubt, Lucy will be along in a while to say it wasn’t a scam, it was a charidee.
I have worked with Trudy in many different capacities and I know for a fact that was NEVER in the money making opportunities listed as Prosper with Integrity, Ad Surf Daily or many of the other ones that she’s been accused of being in.
Anyone can make up rumors and put it out there on the internet. People need to take what they read with a grain of salt and not believe everything that’s in print.
Some of these rumors are not only false, they are also life altering for the person being accused. Also, just because the Receiver/Judge/Lawyers print detailed information about this case…does NOT mean it’s true!
The evidence has long-since been deleted but Gilmond’s Ponzi past is no secret.
True, which is why nobody should believe someone who “worked with” a Ponzi scammer professing their innocence.
Oh, you’re one of those people. My condolences.
Say hi to your whackjob Sovereign Citizens buddies for me.
It’s hard to catch everything, lol. 😉
Gotta get rid of that regenesis 2×2 scam history.
There’s still some other tidbits out there.
Bloody hell, Kathy’s probably holding the camera too lol.